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USDCAD Analysis: Week 7/12/21 - 7/16/21

This is a situation where I see a possible fake breakout. Price broke out of the long term blue trendline and is forming a head & shoulders . In my opinion the fundamental bias for this pair tilts to the downside. I think if we see price breaking back below the trendline there could be some violent moves down as possible buyer stop losses get triggered. This analysis is going against the current trend, so it's a little more dangerous. Risk management is key!

News I'm watching out for. (all pairs)

Comments about the timeline of interest rate hikes.
Comments about quantitative easing (tapering or not).
Keep an eye on the opec+ spat. Watch for tapering of production cuts. Watch for oil demand projections returning to pre-pandemic levels earlier than expected.
Any news about vaccines being ineffective against new variants of the virus.
News about lockdowns due to virus variants.

GL Traders!

"The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance." - Ed Seykota